Vitalik Buterin Warns Against the Popular Trend of the Last Days. Vitalik Buterin warned against DeFi applications and yield farming.
Although the price of Ethereum , which is the second largest cryptocurrency by the total market value, did not increase significantly, the demand for Ethereum network-based DeFi applications was fully recorded. The listing of Compound by Coinbase and attracting the attention of mainstream masses has increased the demand for the DeFi industry to levels that have never been.
Buterin Barrier to DeFi Applications
One of the reasons is that exchanges such as Coinbase are listed as listing the tokens of DeFi applications, while another is known as yield farming. Yield farming is basically based on investors giving and receiving various cryptocurrency loans using many DeFi applications and protocols.
Ethereum co-founder Vitalik Buterin, by explaining what he thinks of it, warned investors.
Some people: let's create easy-to-use global-access financial infrastructure and use mechanism design and smart contracts to create new forms of social organization!
Other people: YAY yield farming 135%!!!1!
There's a tension here that we should be talking about more.
— vitalik.eth (@VitalikButerin) July 1, 2020
In his tweet series published by Buterin, he stated that although DeFi applications are currently in fashion, this interest will be short-lived along with yield farming. Stating that “boring applications” are generally long-lasting instead of “135% revenue-generating” and yield-farming applications, Buterin emphasized that investors should turn to applications that have a global usage and access infrastructure.